UK’s Vertu Motors Warns of £5.5 Million Profit Hit Amid JLR Cyber Disruption
Vertu Motors, a prominent UK car dealership group, has signaled a potential hit of up to £5.5 million (approximately $7.4 million) to its annual profits due to the lengthy cyberattack that struck Jaguar Land Rover (JLR). The disruption at JLR caused factory shutdowns and broad system outages lasting nearly six weeks, affecting Vertu’s operations across 10 JLR dealerships.
About £2 million of that impact was already felt in September alone. Despite the setback, Vertu remains confident it can still meet analysts’ forecasts: the company expects adjusted pretax profits of £27.2 million, excluding losses tied to JLR’s outage.
In its semiannual results covering the six months to August 31, Vertu reported an adjusted pretax profit of £20 million, down roughly 10% year-over-year. The firm is actively evaluating an insurance claim to recover losses stemming from the extended third-party system failure.
Vertu’s shares dropped 3.5% in early trading following the announcement, underscoring investor concern over dependence on JLR’s stable operations.
Why This Matters
Vertu’s predicament highlights how dealership networks are vulnerable to upstream supply chain shocks — especially in cases where a major manufacturer’s systems go offline. JLR’s cyberattack not only stalled vehicle production but disrupted its IT infrastructure, billing, ordering, and logistics systems. As a key partner in that network, Vertu’s financial exposure illustrates the ripple effects of modern cyber risks.
The scale of Vertu’s losses depends heavily on how quickly JLR restores full functionality. If factory operations and digital services resume rapidly, the hit may be contained. But any extended delay could deepen the impact. The insurance outcome will also play a crucial role in offsetting the damage.
For the industry at large, the event reinforces the urgency of robust cybersecurity planning and contingency measures. Car dealers — though not the primary target — are integral cogs in the wider automotive ecosystem and suffer collateral damage in such scenarios.
Vertu’s forecast to maintain its core profitability, even factoring out the JLR-related loss, signals resilience and operational discipline. However, the risk exposure tied to its manufacturer partnerships remains evident.
